Home / Knowledge / News / Textiles / ICE cotton trends stay unchanged this week
ICE cotton trends stay unchanged this week
09
Nov '13
ICE Cotton settled near unchanged on the week at 78.64 cents, as the market bounced on Wednesday and broke a long string of down days led by aggressive spec selling, both of existing longs and initiation of fresh shorts. In the week ending 10/29 specs went 30,000 lots shorter (though they are still net long), which was matched by an equivalent increase in trade buying (whose position is still net short).

Options expiration occurred today without undue volatility, as hedging of a large amount of in-the-money short puts already helped fuel the market’s recent down move. The H4 surpassed the Z3 as the contract with the most open interest today as the index funds ramp up their rolls, and it looks like the low in the Z/H spread may be in.

Specs have sold on expectations of an increase in US production, which was seemingly backed by the slow build-up of cert stocks now numbering over 200k bales including awaiting stocks. Fears of reserve sales in China and therefore an expected slowdown in US export demand also made headlines.

The USDA WASDE report, the first in two months, failed to deliver though as US production increased only to 13.1m bales, and the most other significant change was made to Indian stocks in years past. Export demand, including from China, has continued based on attractive prices; shipments, meanwhile, lag due to the late crop and an inefficient warehousing system akin to that seen in the metals markets.

Although China is likely to release reserves in coming months, imports will not completely turn off and, besides, this fear should mostly be in the market. And with domestic basis levels in the US extremely firm, the main question regarding the cert stock is the precise timing of the de-certs (there were 5k) and their eventual owner.

Ecom USA

Must ReadView All

Apparel/Garments | On 5th Dec 2016

EC proposes new tax rules to support e-commerce in EU

The European Commission (EC) has unveiled a series of measures to...

Apparel/Garments | On 5th Dec 2016

Traders to intensify adoption of digital payments

Adoption of digital payments in their existing business format would...

Textiles | On 5th Dec 2016

US textile & apparel exports down 6.44% in Jan-Sept ’16

The exports of textile and apparel from United States were down 6.44...

Interviews View All

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search